Corporate social and environmental irresponsibilities in supply chains, contamination, and damage of intangible resources: A behavioural approach

Mauro Fracarolli Nunes, Camila Lee Park and Hyunju Shin

International Journal of Production Economics, 2021, vol. 241, issue C

Abstract: Corporate social irresponsibility (CSI) and corporate environmental irresponsibility (CEI) are associated with a range of immoral business-related conducts (e.g., modern slavery, child labour, deforestation, soil contamination). Building on previous research showing that CSI and CEI hold the potential to negatively impact the market value of supply chain partners (i.e. supply chain contamination), we examine the effects of CSI and CEI on companies' intangible resources (i.e. corporate trust, corporate image, attitude toward the firm, and word-of-mouth (WOM) intention). Through the application of two scenario-based experiments and using a multi-tier behavioural approach, we explore how CSI and CEI practiced by a supply chain partner in the earlier positions of a supply chain affect the perception of buyers in the subsequent stages. In addition, we investigate the impact of CSI and CEI in the way the company that engaged in corporate irresponsibilities is perceived by supply chain partners across the chain. Our results reinforce the importance of organizations’ efforts to guarantee that homogenous social and environmental standards are observed by all their partners, as a supply chain seems to be only as sustainable as its least sustainable tier. Beyond that, our empirical evidence allows for new applications of the Resource-Based View (RBV) in supply chain contexts, along with the initial development of the Shared Resources View (SRV).

Keywords: Sustainable supply chain management; Behavioural operations; Supply chain contamination; Intangible resources; Resource-based view; Shared resources view (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527321002516
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:241:y:2021:i:c:s0925527321002516

DOI: 10.1016/j.ijpe.2021.108275

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().